PILGRIMS PRIDE CORP0000802481false00008024812024-02-262024-02-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 26, 2024
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware1-927375-1285071
(State or other jurisdiction of
incorporation or organization)		(Commission File Number)(IRS Employer Identification No.)
1770 Promontory Circle80634-9038
GreeleyCO(Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (970) 506-8000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of Exchange on Which Registered
Common Stock, Par Value $0.01PPCThe Nasdaq Stock Market LLC
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
    Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company ☐
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.
On February 26, 2024 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 Press release dated February 26, 2024.
Exhibit 104 Cover Page Interactive Data File formatted in iXBRL



SIGNATURE  
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 PILGRIM’S PRIDE CORPORATION
 
Date: February 26, 2024/s/ Matthew Galvanoni
 Matthew Galvanoni
 Chief Financial Officer and Chief Accounting Officer


pilgrimslogoa05a01a01a01a11.jpg


Pilgrim’s Pride Reports Fourth Quarter and Year-End 2023 Results

GREELEY, Colo., February 26, 2024 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest poultry producers, reports its fourth quarter and year-end 2023 financial results.

2023 Highlights
•Net Sales of $17.4 billion.
•Consolidated GAAP Operating Income margin of 3.0%.
•GAAP Net Income of $321.6 million and GAAP EPS of $1.36. Adjusted Net Income of $400.3 million, or adjusted EPS of $1.69.
•Adjusted EBITDA of $1.0 billion, or a 6.0% margin, with adjusted EBITDA margins of 5.3% in the U.S., 6.1% in the U.K. and Europe, and 8.7% in Mexico.
•Our U.S. fresh portfolio demonstrated its resiliency, overcoming challenging supply and demand fundamentals and elevated input costs earlier in the year through its diversified offerings across bird sizes, growth with Key Customers, and improved production efficiencies through operational excellence.
•Prepared Foods continues to accelerate its momentum in fully cooked branded offerings as Just Bare® and Pilgrim’s® grew over 59% year over year. Digital platforms remain a key driver as sales more than doubled compared to 2022.
•U.K. and Europe business reinforced the foundation to scale profitable growth with Key Customers, to further diversify its portfolio through branded innovation, and to drive operational excellence efforts in manufacturing and back-office consolidation.
•Mexico enhanced its capacity to grow with Key Customers and increased the diversification of its offerings through the introduction of new brands and further investments in live operations.
•Sustainability efforts continue to drive reduction in production emissions intensity as all regions improved performance compared to 2022. Our progress was recognized externally as key Sustainability-related scores improved.
•Strong liquidity position and net leverage ratio of 2.5x Adjusted EBITDA through prudent management of working capital, consistent execution of our strategies, and improved market fundamentals.
•Progress of our investments to support Key Customer growth, drive operational excellence, and further diversify our portfolio are on target as we initiated production at our expanded Athens, GA facility and start-up our new protein conversion plant is slated by the end of Q1 of 2024.
Fourth Quarter
•Net Sales of $4.5 billion.
•Consolidated GAAP Operating Income margin of 4.1%.
•GAAP Net Income of $134.7 million and GAAP EPS of $0.57. Adjusted Net Income of $139.3 million and adjusted EPS of $0.59.
•Adjusted EBITDA of $309.5 million, or a 6.8% margin, with adjusted EBITDA margins of 7.5% in the U.S., 7.6% in U.K. and Europe, and 1.3% in Mexico.
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•Our U.S. portfolio continued its momentum throughout the period given promotional activity and new distribution with Key Customers in Case Ready and Small Bird, branded momentum across Retail and Food Service in Prepared Foods, and operational excellence efforts in Big Bird.
•Our U.K. and Europe business increased year-over-year and quarter-over-quarter sales and adjusted EBITDA from growth of branded offerings, benefits from network and back-office optimization, and enhanced Key Customer relationships.
•Our Mexico business grew branded offerings, increased presence with Key Customers, and achieved better than breakeven results despite weakened market fundamentals.


UnauditedThree Months EndedYear Ended
December 31, 2023December 25, 2022Y/Y ChangeDecember 31, 2023December 25, 2022Y/Y Change
(In millions, except per share and percentages)
Net sales$4,528.3 $4,127.4 +9.7 %$17,362.2 $17,468.4 (0.6)%
U.S. GAAP EPS$0.57 $(0.66)(186.4)%$1.36 $3.10 (56.1)%
Operating income$184.3 $(77.5)(337.7)%$522.3 $1,176.6 (55.6)%
Adjusted EBITDA(1)
$309.5 $62.9 +392.4 %$1,034.2 $1,648.4 (37.3)%
Adjusted EBITDA margin(1)
6.8 %1.5 %+5.3  pts6.0 %9.4 %(3.4) pts
(1)     Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
During 2023, commodities were exceptionally volatile as markets began at near record lows given supply and demand imbalance and availability of other proteins combined with unsettling consumer sentiment. Throughout the year values gradually returned to more seasonal levels, while cost inflation remained elevated compared to historical standards.
“While our business faced a unique set of challenging conditions in 2023, we persevered as our team members maintained a leadership mindset and elevated their focus and execution of our strategy. As a result, we demonstrated an ability to drive profitable growth even under the most difficult circumstances as our sales and adjusted EBITDA strengthened throughout year and showed increased momentum as we entered 2024,” said Fabio Sandri.
In the 4th quarter, the U.S. portfolio continued to profitably grow as Case Ready and Small Bird realized benefits from additional promotional activity with Key Customers, more distribution, and increased retail pricing spreads from competing proteins. Prepared Foods also gained further momentum as branded offerings expanded throughout retail and distribution improved in foodservice. As for Big Bird, operating costs continued to improve from increased production efficiencies and better market conditions.
“Given the actual market conditions, the affordability and availability of chicken resonated with consumers. As such, we worked closely with our Key Customers in both retail and food service to drive increased traffic through promotions and broaden their lineup of chicken offerings across fresh and prepared items,” remarked Fabio Sandri.
The U.K. and Europe demonstrated progress again in profitability improvement in the 4th quarter through Key Customer partnerships, branded innovation, and operational excellence. The efforts were accelerated by recent actions to further streamline our production networks and support activities.
“While we’ve improved profitability throughout the year, we recognize that speed to market with our diversified portfolio will be critical to meet our growth aspirations, especially with Key Customers. We implemented a more nimble organizational structure that promotes ownership and discipline throughout our diversified portfolio. Moving forward, we will continue to explore alternatives across all aspects of the organization to cultivate profitable growth,” remarked Fabio Sandri.
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As for Mexico, supply and demand fundamentals were challenging in October but gained strength throughout the quarter. Despite market conditions, the team maintained an intense focus on our strategy and our operations.
“While Mexico has continually faced volatile market conditions quarter over quarter, it continues to generate strong, steady results year over year. In the 4th quarter, we further diversified our portfolio as our brands continue to gain strong traction with consumers and retailers alike. Our investments to increase capacity and reduce production risk through operational excellence are proceeding as planned. Key Customer relationships continue to strengthen as volumes ended up nearly double digits compared to full year 2022,” said Fabio.
Pilgrim’s continues to make progress in sustainability as all regions reduced their natural gas and electrical usage intensity compared to 2022. External agencies have also recognized our progress with improvements in key scores compared to 2022.
“While we had challenging market conditions during the year, our commitment to sustainability remained firm. Our team identified ways to embed innovative practices in our business to simultaneously drive sustainability and enhance profitable growth. This leadership mindset enables a better future for our team members, strengthening our vision of becoming the best and most respected company in our industry,” remarked Fabio.
Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held on the morning of February 26, at 7:00 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://services.choruscall.com/links/ppc240226.html

You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under “Upcoming Events.”

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com.

About Pilgrim’s Pride

Pilgrim’s employs over 61,200 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other
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diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.


Contact:Andrew Rojeski
Head of Strategy, Investor Relations, & Net Zero Programs
IRPPC@pilgrims.com
www.pilgrims.com

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PILGRIM’S PRIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 2023December 25, 2022
 (In thousands, except share and par value data)
Cash and cash equivalents$697,748 $400,988 
Restricted cash and cash equivalents33,475 33,771 
Trade accounts and other receivables, less allowance for credit losses1,129,178 1,097,212 
Accounts receivable from related parties1,778 2,512 
Inventories1,985,399 1,990,184 
Income taxes receivable161,062 155,859 
Prepaid expenses and other current assets195,831 211,092 
Total current assets4,204,471 3,891,618 
Deferred tax assets4,890 1,969 
Other long-lived assets35,646 41,574 
Operating lease assets, net266,707 305,798 
Identified intangible assets, net853,983 846,020 
Goodwill1,286,261 1,227,944 
Property, plant and equipment, net3,158,403 2,940,846 
Total assets$9,810,361 $9,255,769 
Accounts payable$1,410,576 $1,587,939 
Accounts payable to related parties41,254 12,155 
Revenue contract liabilities84,958 34,486 
Accrued expenses and other current liabilities926,727 850,899 
Income taxes payable31,678 58,411 
Current maturities of long-term debt674 26,279 
Total current liabilities2,495,867 2,570,169 
Noncurrent operating lease liabilities, less current maturities203,348 230,701 
Long-term debt, less current maturities3,340,841 3,166,432 
Deferred tax liabilities385,548 364,184 
Other long-term liabilities40,180 71,007 
Total liabilities6,465,784 6,402,493 
Common stock, $.01 par value, 800,000,000 shares authorized; 261,931,080 and
    261,610,518 shares issued at year-end 2023 and year-end 2022, respectively;
    236,789,927 and 236,469,365 shares outstanding at year-end 2023 and year-end
    2022, respectively		2,620 2,617 
Treasury stock, at cost, 25,141,153 shares at year-end 2023 and year-end 2022.(544,687)(544,687)
Additional paid-in capital1,978,849 1,969,833 
Retained earnings2,071,073 1,749,499 
Accumulated other comprehensive loss(176,483)(336,448)
Total Pilgrim’s Pride Corporation stockholders’ equity3,331,372 2,840,814 
Noncontrolling interest13,205 12,462 
Total stockholders’ equity3,344,577 2,853,276 
Total liabilities and stockholders' equity$9,810,361 $9,255,769 

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PILGRIM’S PRIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
 Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
 (In thousands, except per share data)
Net sales$4,528,302 $4,127,365 $17,362,217 $17,468,377 
Cost of sales4,207,255 4,031,583 16,243,816 15,656,574 
Gross profit321,047 95,782 1,118,401 1,811,803 
Selling, general and administrative expense131,087 142,840 551,770 604,742 
Restructuring activities5,661 30,466 44,345 30,466 
Operating income (loss)184,299 (77,524)522,286 1,176,595 
Interest expense, net of capitalized interest66,813 41,369 202,272 152,672 
Interest income(12,308)(4,071)(35,651)(9,028)
Foreign currency transaction losses (gains)(22,892)16,469 20,570 30,817 
Miscellaneous, net(3,942)(1,505)(30,127)(23,339)
Income before income taxes156,628 (129,786)365,222 1,025,473 
Income tax expense22,417 25,256 42,905 278,935 
Net income (loss)134,211 (155,042)322,317 746,538 
Less: Net income (loss) attributable to noncontrolling
     interests		(442)(66)743 608 
Net income (loss) attributable to Pilgrim’s Pride
     Corporation		$134,653 $(154,976)$321,574 $745,930 
Weighted average shares of common stock outstanding:
Basic236,790 236,469 236,725 239,766 
Effect of dilutive common stock equivalents675 — 572 628 
Diluted237,465 236,469 237,297 240,394 
Net income (loss) attributable to Pilgrim's Pride
     Corporation per share of common stock
     outstanding:
Basic$0.57 $(0.66)$1.36 $3.11 
Diluted$0.57 $(0.66)$1.36 $3.10 

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PILGRIM’S PRIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended
 December 31, 2023December 25, 2022
 (In thousands)
Cash flows from operating activities:
Net income $322,317 $746,538 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization419,900 403,110 
Loss on early extinguishment of debt recognized as a component of interest expense20,694 — 
Loan cost amortization7,366 4,753 
Share-based compensation7,226 6,985 
Deferred income tax expense6,675 21,295 
Gain on property disposals(6,052)(18,908)
Asset impairment4,010 3,559 
Accretion of bond discount2,278 1,717 
Gain on equity method investments328 (2)
Changes in operating assets and liabilities:
Trade accounts and other receivables(19,007)(149,599)
Inventories12,602 (472,224)
Prepaid expenses and other current assets17,776 18,264 
Accounts payable and accrued expenses(68,677)263,288 
Income taxes(8,878)(142,455)
Long-term pension and other postretirement obligations(9,993)(4,128)
Other operating assets and liabilities(30,688)(12,330)
Cash provided by operating activities677,877 669,863 
Cash flows from investing activities:
Acquisitions of property, plant and equipment(543,816)(487,110)
Proceeds from insurance recoveries20,681 16,034 
Proceeds from property disposals19,784 35,516 
Purchase of acquired businesses, net of cash acquired— (9,692)
Cash used in investing activities(503,351)(445,252)
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term borrowings1,768,236 362,540 
Payments on revolving line of credit, long-term borrowings, and finance lease obligations(1,616,321)(388,299)
Payment of capitalized loan costs(19,816)(4,741)
Payment on early extinguishment of debt(13,780)— 
Distribution of capital under the TSA(1,592)(1,961)
Purchase of common stock under share repurchase program— (199,553)
Cash provided by (used in) financing activities116,727 (232,014)
Effect of exchange rate changes on cash and cash equivalents5,211 (7,959)
Increase (decrease) in cash and cash equivalents296,464 (15,362)
Cash and cash equivalents, beginning of year434,759 450,121 
Cash and cash equivalents, end of year$731,223 $434,759 
Supplemental Disclosure Information:
Interest paid (net of amount capitalized)$131,205 $156,292 
Income taxes paid19,749 385,585 
Accounts payable and accrued expenses for capital expenditures for property, plant and equipment85,943 

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PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) transaction costs related to business acquisitions, (3) costs related to litigation settlements, (4) restructuring activities losses, (5) property insurance recoveries, and (6) net income attributable to noncontrolling interest. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In thousands)
Net income (loss)$134,211 $(155,042)$322,317 $746,538 
Add:
Interest expense, net(a)
54,505 37,298 166,621 143,644 
Income tax expense22,417 25,256 42,905 278,935 
Depreciation and amortization112,486 102,148 419,900 403,110 
EBITDA323,619 9,660 951,743 1,572,227 
Add:
Foreign currency transaction losses (gains)(b)
(22,892)16,469 20,570 30,817 
Transaction costs related to acquisitions(c)
— (24)— 948 
Litigation settlements(d)
4,700 5,804 39,400 34,086 
Restructuring activities losses(e)
5,661 30,466 44,345 30,466 
Minus:
Property insurance recoveries(f)
2,038 (417)21,124 19,580 
Net income (loss) attributable to noncontrolling interest(442)(66)743 608 
Adjusted EBITDA$309,492 $62,858 $1,034,191 $1,648,356 
(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Income.
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(c)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(d)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(e)Restructuring charges is primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(f)This represents property insurance recoveries for property damage losses.

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The summary unaudited consolidated income statement data for the 12 months ended December 31, 2023 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 31, 2023.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)
Three Months EndedLTM Ended December 31, 2023
March 26, 2023June 25, 2023September 24, 2023December 31, 2023
(In thousands)
Net income$5,631 $60,908 $121,567 $134,211 $322,317 
Add:
Interest expense, net39,062 39,524 33,530 54,505 166,621 
Income tax expense(8,840)(15,225)44,553 22,417 42,905 
Depreciation and amortization98,257 104,857 104,300 112,486 419,900 
EBITDA134,110 190,064 303,950 323,619 951,743 
Add:
Foreign currency transaction losses (gains)18,143 16,395 8,924 (22,892)20,570 
Litigation settlements11,200 13,000 10,500 4,700 39,400 
Restructuring activities losses8,026 29,718 940 5,661 44,345 
Minus:
Property insurance recoveries19,086 — — 2,038 21,124 
Net income (loss) attributable to
     noncontrolling interest		444 452 289 (442)743 
Adjusted EBITDA$151,949 $248,725 $324,025 $309,492 $1,034,191 

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EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
Three Months EndedYear EndedThree Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In thousands, except percent of net sales)
Net income (loss)$134,211 $(155,042)$322,317 $746,538 2.96 %(3.76)%1.86 %4.27 %
Add:
Interest expense, net54,505 37,298 166,621 143,644 1.20 %0.90 %0.96 %0.82 %
Income tax expense22,417 25,256 42,905 278,935 0.50 %0.61 %0.25 %1.60 %
Depreciation and amortization112,486 102,148 419,900 403,110 2.48 %2.47 %2.42 %2.31 %
EBITDA323,619 9,660 951,743 1,572,227 7.14 %0.22 %5.48 %9.00 %
Add:
Foreign currency transaction
     losses (gains)
(22,892)16,469 20,570 30,817 (0.50)%0.41 %0.13 %0.18 %
Transaction costs related
     to acquisitions
— (24)— 948 — %— %— %0.01 %
Litigation settlements4,700 5,804 39,400 34,086 0.10 %0.14 %0.21 %0.19 %
Restructuring activities losses5,661 30,466 44,345 30,466 0.13 %0.74 %0.26 %0.17 %
Minus:
Property insurance recoveries2,038 (417)21,124 19,580 0.05 %(0.01)%0.12 %0.11 %
Net income (loss) attributable to
     noncontrolling interest
(442)(66)743 608 (0.01)%— %— %— %
Adjusted EBITDA$309,492 $62,858 $1,034,191 $1,648,356 6.83 %1.52 %5.96 %9.44 %
Net sales$4,528,302 $4,127,365 $17,362,217 $17,468,377 


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Adjusted EBITDA by segment figures s are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months EndedThree Months Ended
December 31, 2023December 25, 2022
U.S.U.K. & EuropeMexicoTotalU.S.U.K. & EuropeMexicoTotal
(In thousands)(In thousands)
Net income (loss)$76,321 $46,181 $11,709 $134,211 $(86,893)$(22,193)$(45,956)$(155,042)
Add:
Interest expense, net(a)
66,779 (1,458)(10,816)54,505 38,094 633 (1,429)37,298 
Income tax expense (benefit)4,047 18,635 (265)22,417 (22,097)20,673 26,680 25,256 
Depreciation and amortization68,004 38,707 5,775 112,486 63,370 32,899 5,879 102,148 
EBITDA215,151 102,065 6,403 323,619 (7,526)32,012 (14,826)9,660 
Add:
Foreign currency transaction losses (gains)(b)
(19,594)(3,355)57 (22,892)17,060 442 (1,033)16,469 
Transaction costs related to acquisitions(c)
— — — — — (24)— (24)
Litigation settlements(d)
4,700 — — 4,700 5,804 — — 5,804 
Restructuring activities(e)
— 5,661 — 5,661 — 30,466 — 30,466 
Minus:
Property insurance recoveries(f)
— 1,921 117 2,038 (417)— — (417)
Net income attributable to noncontrolling interest— — (442)(442)— — (66)(66)
Adjusted EBITDA$200,257 $102,450 $6,785 $309,492 $15,755 $62,896 $(15,793)$62,858 
(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Income.
(c)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(d)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(e)Restructuring charges is primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(f)This represents property insurance recoveries for property damage losses.
12

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Year EndedYear Ended
December 31, 2023December 25, 2022
U.S.U.K. & EuropeMexicoTotalU.S.U.K. & EuropeMexicoTotal
(In thousands)(In thousands)
Net income (loss)$32,520 $114,666 $175,131 $322,317 $706,704 $(3,642)$43,476 $746,538 
Add:
Interest expense, net(a)
194,013 (2,928)(24,464)166,621 143,941 2,126 (2,423)143,644 
Income tax expense (benefit)(5,848)23,378 25,375 42,905 220,245 8,290 50,400 278,935 
Depreciation and amortization255,052 142,190 22,658 419,900 244,617 134,374 24,119 403,110 
EBITDA475,737 277,306 198,700 951,743 1,315,507 141,148 115,572 1,572,227 
Add:
Foreign currency transaction losses (gains)(b)
35,433 (2,520)(12,343)20,570 35,702 (3,008)(1,877)30,817 
Transaction costs related to acquisitions(c)
— — — — 847 101 — 948 
Litigation settlements(d)
39,400 — — 39,400 34,086 — — 34,086 
Restructuring activities losses(e)
— 44,345 — 44,345 — 30,466 — 30,466 
Minus:
Property insurance recoveries(f)
19,086 1,921 117 21,124 19,580 — — 19,580 
Net income attributable to noncontrolling interest— — 743 743 — — 608 608 
Adjusted EBITDA$531,484 $317,210 $185,497 $1,034,191 $1,366,562 $168,707 $113,087 $1,648,356 
(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses (gains) in the Consolidated Statements of Income.
(c)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(d)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(e)Restructuring charges is primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(f)This represents property insurance recoveries for the property damage losses.

13

Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In thousands)
GAAP operating income, U.S. operations$128,353 $(52,796)$238,894 $1,094,025 
Litigation settlements(a)
4,700 5,804 39,400 34,086 
Transaction costs related to acquisitions(b)
— — — 847 
Adjusted operating income, U.S. operations$133,053 $(46,992)$278,294 $1,128,958 
Adjusted operating income margin, U.S. operations5.0 %(1.9)%2.8 %10.5 %
GAAP operating income, U.K. and Europe operations$57,568 $(1,340)$128,151 $(934)
Restructuring activities losses5,661 30,466 44,345 30,466 
Adjusted operating income, U.K. and Europe operations$63,229 $29,126 $172,496 $29,532 
Adjusted operating income margin, U.K. and Europe operations4.7 %2.4 %3.3 %0.6 %
GAAP operating income, Mexico operations$(1,621)$(23,400)$155,455 $83,450 
No adjustments— — — — 
Adjusted operating income, Mexico operations$(1,621)$(23,400)$155,455 $83,450 
Adjusted operating income margin, Mexico operations(0.3)%(5.1)%7.3 %4.5 %
(a)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(b)These costs represent charges incurred related to the acquisition of Pilgrim's Food Masters (formerly, Kerry Consumer Foods' Meats and Meals businesses).

14

Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
(Unaudited)
Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In percent)
GAAP operating income margin, U.S. operations4.8 %(2.2)%2.4 %10.2 %
Litigation settlements0.2 %0.3 %0.4 %0.3 %
Transaction costs related to acquisitions— %— %— %— %
Adjusted operating income margin, U.S. operations5.0 %(1.9)%2.8 %10.5 %
GAAP operating income margin, U.K. and Europe operations4.3 %(0.1)%2.5 %— %
Restructuring activities losses0.4 %2.5 %0.8 %0.6 %
Adjusted operating income margin, U.K. and Europe operations4.7 %2.4 %3.3 %0.6 %
GAAP operating income margin, Mexico operations(0.3)%(5.1)%7.3 %4.5 %
No adjustments— %— %— %— %
Adjusted operating income margin, Mexico operations(0.3)%(5.1)%7.3 %4.5 %

15

Adjusted net income attributable to Pilgrim's Pride Corporation ("Pilgrim's") is calculated by adding to net income attributable to Pilgrim's certain items of expense and deducting from net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
Three Months EndedYear Ended
December 31,
2023		December 25,
2022		December 31,
2023		December 25,
2022
(In thousands, except per share data)
Net income (loss) attributable to Pilgrim's$134,653 $(154,976)$321,574 $745,930 
Add:
Foreign currency transaction losses (gains)(22,892)16,469 20,570 30,817 
Transaction costs related to acquisitions— (24)— 948 
Litigation settlements4,700 5,804 39,400 34,086 
Restructuring activities losses5,661 30,466 44,345 30,466 
Loss on early extinguishment of debt recognized as a
     component of interest expense(a)
20,694 — 20,694 — 
Minus:
Property insurance recoveries2,038 — 21,124 19,580 
Adjusted net income (loss) attributable to Pilgrim's before tax impact140,778 (102,261)425,459 822,667 
Net tax impact of adjustments(b)
(1,483)(12,757)(25,140)(19,115)
Adjusted net income (loss) attributable to Pilgrim's$139,295 $(115,018)$400,319 $803,552 
Weighted average diluted shares of common stock outstanding237,465236,469237,297240,394
Adjusted net income attributable to Pilgrim's per common diluted share$0.59 $(0.49)$1.69 $3.34 
(a)    The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2027.
(b)     Net tax impact of adjustments represents the tax impact of all adjustments shown above.
16

Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In thousands, except per share data)
U.S. GAAP EPS$0.57 $(0.66)$1.36 $3.10 
Add:
Foreign currency transaction losses (gains)(0.10)0.08 0.09 0.13 
Transaction costs related to acquisitions— — — — 
Litigation settlements0.02 0.02 0.16 0.14 
Restructuring activities losses0.02 0.13 0.19 0.13 
Loss on early extinguishment of debt recognized as a component of interest expense0.09 — 0.08 — 
Minus:
Property insurance recoveries0.01 — 0.09 0.08 
Adjusted EPS attributable to Pilgrim's before tax impact0.59 (0.43)1.79 3.42 
Net tax impact of adjustments(a)
— (0.06)(0.10)(0.08)
Adjusted EPS$0.59 $(0.49)$1.69 $3.34 
Weighted average diluted shares of common stock outstanding237,465 236,469 237,297 240,394 
(a)    Net tax impact of adjustments represents the tax impact of all adjustments shown above.
17

PILGRIM'S PRIDE CORPORATION
Supplementary Geographic Data
(Unaudited)
Three Months EndedYear Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
(In thousands)
Sources of net sales by country of origin:
U.S.$2,660,649 $2,430,343 $10,027,742 $10,748,350 
Europe1,341,103 1,234,609 5,203,322 4,874,738 
Mexico526,550 462,413 2,131,153 1,845,289 
Total net sales$4,528,302 $4,127,365 $17,362,217 $17,468,377 
Sources of cost of sales by country of origin:
U.S.$2,461,255 $2,406,386 $9,505,258 $9,312,445 
Europe1,233,572 1,154,440 4,828,623 4,634,066 
Mexico512,427 470,769 1,909,721 1,710,117 
Elimination1 (12)214 (54)
Total cost of sales$4,207,255 $4,031,583 $16,243,816 $15,656,574 
Sources of gross profit by country of origin:
U.S.$199,394 $23,957 $522,484 $1,435,905 
Europe107,531 80,169 374,699 240,672 
Mexico14,123 (8,356)221,432 135,172 
Elimination(1)12 (214)54 
Total gross profit$321,047 $95,782 $1,118,401 $1,811,803 
Sources of operating income (loss) by country of origin:
U.S.$128,353 $(52,796)$238,894 $1,094,025 
Europe57,568 (1,340)128,151 (934)
Mexico(1,621)(23,400)155,455 83,450 
Elimination(1)12 (214)54 
Total operating income (loss)$184,299 $(77,524)$522,286 $1,176,595 


18
v3.24.0.1
Cover Page
Feb. 26, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 26, 2024
Entity Registrant Name PILGRIMS PRIDE CORP
Entity Central Index Key 0000802481
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 1-9273
Entity Tax Identification Number 75-1285071
Entity Address, Address Line One 1770 Promontory Circle
Entity Address, City or Town Greeley
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80634-9038
City Area Code 970
Local Phone Number 506-8000
Title of 12(b) Security Common Stock, Par Value $0.01
Trading Symbol PPC
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
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